Germany Moves Up

The Index of Germany has shown signs of strength in the last several days as Germany's stock market is up substantially along with a stronger Euro.We have seen price show a break out of our descending trendline similar to the one in the US30 chart which also led price to break the 12375 resistance.

We did not see a retest of the trendline, however, we are now looking for a retest of the resistance turned support at 12375 for a long position. Over the last 3-4 days last week we saw price show indecision, will could possible lead to the retracement for a retest.

Market participants are now closely observing the Index in order to grasp an idea where is is headed next.. If we are able to take a long position from a retest/retracement then we will look to target the 12825 resistance area. Taking a look at the EMA's we can also see the 20EMA is just crossing over the 50EMA which is another bullish confluence.

Chart: DAX30, D1